Get the ins and outs of green bonds in this two-part series. Let's start with the basics.
A green bond is a type of fixed-income instrument that specifically and solely dedicates its proceeds to financing new or existing projects that advance environmental objectives. Issuers set the qualifying criteria for these green projects, and have used the bonds to finance initiatives in fields such as renewable energy, green buildings, wastewater management, energy efficiency and public transportation.
Unlike a debt offering from a company that presents its overall operations as environmentally friendly, green bond proceeds are